Application of Fractional Model and Two Part Model to Evaluation on Mortgage Risk of Default Behaviour

Yueh Cheng; Cheng Chung Wu; W Hsiang Lin

doi:10.4028/www.scientific.net/AMR.214.503

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HomeAdvanced Materials ResearchAdvanced Materials Research Vol. 214Application of Fractional Model and Two Part Model...

Application of Fractional Model and Two Part Model to Evaluation on Mortgage Risk of Default Behaviour

Abstract:

This paper has debated between fractional and two part models in the context of default behaviour, applications where a large proportion of zero observations are typically found. The predictive capacity in this paper is to provider the direction of consideration and very good fit result to the behaviour of default for bank. From the perspective of practitioners, it could point of view the characteristics of borrowers of each variable would seem to be choosing in this paper. This paper also provides the simply looking at the extent to which policy decision of bank conclusions would differ depending upon the characteristics of customers’ behaviour consideration.

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Periodical:

Advanced Materials Research (Volume 214)

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503-507

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.214.503

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Online since:

February 2011

Authors:

Yueh Cheng, Cheng Chung Wu, W Hsiang Lin

Keywords:

Default Behaviour, Mortgage Risk, Two Part Model

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References

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